VIETNAM-BASED BRANCHES OF FOREIGN SECURITIES COMPANIES MAY ONLY PERFORM SECURITIES INVESTMENT CONSULTANCY
On November 16, 2020, the Ministry of Finance issues the Circular No. 97/2020/TT-BTC guiding the operation of Vietnam-based representative offices and branches of foreign securities companies and foreign fund management companies.
Several rights of a Vietnam-based representative office of a foreign securities company or foreign fund management company defined in this Circular as follows: To open an account in foreign currencies or Vietnam dong of foreign currency origin at a commercial bank licensed to conduct foreign exchange business in Vietnam; To recruit Vietnamese and foreign employees to work in the representative office; To have its own seal in accordance with law; etc.
Vietnam-based branches of foreign securities companies shall ensure that their employees working the following tasks must possess certificate of securities practice: Providing consultancy and explanation for contracts signed with their customers; Signing in the securities analysis results, securities analysis reports; Providing recommendations related to securities purchase, sale or holding. Vietnam-based branches of foreign securities companies may only perform securities investment consultancy.
Additionally, time limits for submitting reports of Vietnam-based branches of foreign securities companies and foreign fund management company are prescribed as follows: Within 05 working days from the last day of a month, for monthly reports; Within 20 days from the last day of a quarter, for quarterly reports; Within 45 days from the last day of a second quarter, for biannual reports; Within 90 days from the last day of a year; for annual reports.
